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Updated 20.3.2000
Concepts and definitionsBusiness enterpriseAccording to Statistics Finland's Business Register, a business enterprise is an economic unit covering its expenses either totally or at least principally by income derived from sales, interests, dividends or insurance premiums. The main purpose of a business enterprise is to produce goods or services for sale on the market at a price meeting production costs or to serve enterprises engaged in such activities. The majority of educational enterprises and agencies in Finland are business enterprises (93 per cent).A minority (7 per cent) of Finnish educational enterprises and agencies do not meet the requirements of business enterprises. Such units are non-profit institutions covering their expenses with membership fees, contributions and allowances from the national and municipal economy. This survey on educational enterprises and agencies includes both business enterprises and non-profit institutions in case the principal activity of the enterprise is education and training and it is not an educational institution within the formal education system. Educational enterpriseEducational enterprises and agencies include enterprises providing training outside the Finnish education system (see the definition for Educational institution within the formal educational system) and non-profit institutions and own-account employees organising training services for private persons and enterprises. Some of the educational enterprises produce training services for educational institutions supervised by the educational administration as a bought-in service activity (see the definition for Bought-in service activity).In 1996, there were 1,274 educational enterprises as described in this
survey in Finland. The educational enterprises can be divided by their
sector as follows:
Other educational institutions and units include enterprises organising training in the use of information technology, preparation and consultation services, and craft and arts, beauty care, health care and physical education as well as human relations education. Training activities organised by various associations and organisations are, for the main, included in this group. The definition of educational enterprises is based on Statistics Finland's Standard Industrial Classification (see for more details Standard Industrial Classification 1995, Statistics Finland's Handbooks 4, Helsinki, 1993). Educational institutions within the formal education systemThe definition is based on Statistics Finland's classification of educational institutions (see for more details Oppilaitosluokitus ja -luettelo 1995, Statistics Finland, Education 1996:3).In Finland, educational institutions within the formal education system are primarily those educational institutions whose activities are governed by some regulation concerning education and training, or are comparable to the activities of the educational institutions controlled by a regulation. The basic division of Finnish educational institutions within the formal education system is as follows:
Economic activityThe classification of educational institutions is based on Statistics Finland's Standard Industrial Classification (see for more details Standard Industrial Classification 1995, Statistics Finland's Handbooks 4, Helsinki, 1993).The economic activity of an enterprise is determined in Statistics Finland's Business Register on the basis of the increment value generated in the different economic activities of the enterprise. The increment value corresponds closely to value added. The increment value of each activity of an enterprise is obtained by multiplying the number of employees by each activity by the average increment value in the sector in question. The principal activity of the enterprise is the one with the highest increment value. Driving schools belong to sub-class 80410 (Driving school activities) and private educational institutions providing music and art education belong to sub-class 80421 (Folk high schools, adult education centres, music schools and colleges, etc.) In-service training centres belong to sub-class 80422, private vocational and professional education institutions to sub-class 80220 and other educational institutions and units to sub-class 80429. Multi-activity enterprises having some other activity than educationIn this survey, a multi-activity enterprise having some other activity than education refers to an enterprise with more than one establishments and with some other principal activity than education. The establishments of a multi-activity enterprise having some other activity than education do not operate within the same economic activity but the enterprise may have several establishments with various activities. In this survey, the included multi-activity enterprises (with some other principal activity than education) have one or more establishments providing training.TurnoverAs many as 943 (74 per cent) of the educational enterprises in this survey have data on turnover. There is no turnover data for 15 per cent of the enterprises and some 11 per cent of the enterprises have no conceptual turnover.Turnover data is missing from those enterprises that started operation in 1996 and have not yet concluded their financial statements. 60 per cent of the enterprises with missing data started operation in 1996. Individual, other educational institutions and units (see the definition for Educational enterprise) quite often did not have turnover data. Two thirds of the enterprises without turnover data were such enterprises. Enterprises with no conceptual turnover were non-profit institutions (see the definition for Purpose of activity). There were also some enterprises whose legal form was primarily that of a natural person or a limited company. Size of enterpriseThe used data comprises the number of person-years derived from Statistics Finland's Business Register. The data on the size of enterprises includes both paid employees and entrepreneurs.In some cases the data in Statistics Finland's Business Register may be deficient; for example, in cases where an educational enterprise purchases the services of a teacher or an instructor from elsewhere (subcontracting) and the employment relationship with the enterprise is of a very short duration (primarily of a few hours). EmployeeThe number of employees refers to the number of paid employees in the enterprise as reported by the enterprise. If the entrepreneur pays him/herself a salary, he/she is included in salaried employees.In some cases the data in the Business Register may be deficient; for example, in cases where an educational enterprise purchases the services of a teacher or an instructor from elsewhere (subcontracting) and the employment relationship with the enterprise is of a very short duration (primarily of a few hours). Legal formThe legal form of an enterprise is the classification specified by the Finnish Tax Administration. In 1996 the breakdown of educational enterprises was as follows:
Purpose of activityThe division by the purpose of activity is based on the above-mentioned 'Legal form' classification. On the basis of it, enterprises can be divided into business enterprises and non-profit institutions. The educational enterprises that are non-profit institutions have no turnover.In 1996, the educational enterprises that were non-profit institutions were foundations and funds, voluntary associations or public corporations. Business enterprises were natural persons, taxable partnerships, unlimited partnerships, limited partnerships, limited companies, co-operative associations, economic associations or unincorporated government enterprises. Division into areasThe new division into provinces is used in this survey (see map):
This concerns the legal registered office of an enterprise, not necessarily its actual location. The legal registered office is determined by the primary establishment of the enterprise. For educational enterprises, the legal registered office and the actual location are mostly the same. ParticipantIn this survey, a participant refers to a 'participation event', not to a person. The same person may have taken part in one or more training activities.Hours taughtHours taught refer to the total number of hours taught by a teacher/instructor/lecturer during the calendar year 1996. The hours are given in integers in the questionnaire.Adult education by type of educationIn this study, adult education refers to education and training or learning situations in which the needs and wishes of adults have been specifically considered in the planning, implementation or other organising of training.Labour market trainingIn this survey, labour market training denotes training purchased from educational enterprises by the Finnish employment authorities as a labour policy measure. This includes whole courses, not individual training positions procured by the employment authorities.Customised coursesCustomised courses here refer to courses that an enterprise or some other employer, organisation or the like has ordered from an educational enterprise. The needs of the customer have been taken into account as concerns the contents of the course or other factors relating to organising and implementing training. It should be noted that the courses ordered by the Finnish employment authorities are treated separately in this survey and not included in customised courses in this context (see Labour market training).In-house training for own personnelIn-house training organised by an educational enterprise only for its own personnel is included. In-house training ordered from or organised by agencies outside the educational enterprise is excluded.Other adult educationOther adult education includes all other adult education not included in the above categories (labour market training, customised courses, in-house personnel training).This type of education comprises training bought by an employer for an individual employee, for example (the purchaser of training did not order separate training as was the case for customised courses). Similarly, self-directed training paid by the participant is placed in this type of education. Education for children and young peopleEducation for children and young people here means education in which the special features and needs related to the learning and development of children and young people are taken into account in the planning, implementation or other organising of education.Classification of the content of adult educationThe Finnish classification of the content of adult education is based on the classification of education by Statistics Finland which rests on an internationally accepted classification. See for more details Finnish Standard Classification of Education 31.12.1994, Statistics Finland's Handbooks 1, Helsinki 1995, p. 146. The classification used in the survey is as follows:11 Fine and applied arts programmes
Each course or training of an educational enterprise is classified only under one content category in accordance with the primary content or object of the course or training. Bought-in service activityIn bought-in services, an educational institution or an enterprise buys a whole course, a lecture or lecture days from an educational enterprise. An educational institution can purchase training from specialised entrepreneurs if there are no experts in the field in question in the school staff, for example. The buyer, or the training organiser can also be another educational enterprise.Bought-in services are typically used with consulting, especially when developing the enterprise's personnel policy. Some parts of labour market training are also organised as bought-in services.
See also Education and training in educational enterprises 1996:
Inquiries:
Education and training in educational enterprises
1996: Summary
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